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Borrowing costs for second homes set to increase
By Cherry Cao |
March 2, 2013, Saturday
|
Print Edition
Print Edition
CITIES where home prices have increased notably fast may raise borrowing costs for second-home buyers, the State Council said yesterday.
Currently, second-home buyers have to make an initial payment of 60 percent of the property price. Interest rates are 10 percent above benchmark at present.
In the meantime, a 20 percent tax on sellers - based on their profit - should be strictly implemented, the State Council statement said.
The announcement comes about a week after the central government pledged to continue austerity measures across the country in light of price rises in some cities that were faster than expected.
Song Huiyong, a research director at Shanghai Centaline Property Consultants Ltd, said any impact on the local housing market would be rather limited.
Latest research by Centaline found that fewer than half the city's existing home buyers apply for bank loans and the majority of mortgage payers are first-time buyers.
Currently, second-home buyers have to make an initial payment of 60 percent of the property price. Interest rates are 10 percent above benchmark at present.
In the meantime, a 20 percent tax on sellers - based on their profit - should be strictly implemented, the State Council statement said.
The announcement comes about a week after the central government pledged to continue austerity measures across the country in light of price rises in some cities that were faster than expected.
Song Huiyong, a research director at Shanghai Centaline Property Consultants Ltd, said any impact on the local housing market would be rather limited.
Latest research by Centaline found that fewer than half the city's existing home buyers apply for bank loans and the majority of mortgage payers are first-time buyers.
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